Question
Company A acquired Company B for $50,000,000 on January 1. The fair value of Company Bs accounts are the following: Cash $2,500,000; Accounts Receivable $8,000,000;
Company A acquired Company B for $50,000,000 on January 1. The fair value of Company Bs accounts are the following: Cash $2,500,000; Accounts Receivable $8,000,000; Inventory $3,500,000; Property, Plant, and Equipment $20,000,000; Liabilities $18,000,000; Common Stock $12,000,000. On December 31, the fair value of Company B was $26,000,000. Compute the impairment loss, if any.
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Financial Accounting
Authors: Tony Davies, Ian Crawford
1st Edition
0273723073, 9780273723073
